Nouvelles

t's harder to win business amid a pandemic, said one-third of industry respondents in a Defense One reader survey. Federal contractors and private-sector workers say the coronavirus pandemic is hurting business and their ability to compete for government work, a new survey of Defense One readers has found. More than 75 percent said COVID-19 had a moderate, major, or extreme impact on their company's day-to-day operations. About 22 percent said the virus had a minimal impact; 2 percent, no impact. Nearly 60 percent of the respondents said coronavirus has forced them to slow or pause production. Nearly 40 percent said their business has seen disruptions to its cash flow. Defense One commissioned the survey, which was conducted by Government Business Council, a division of Defense One's parent company, Government Executive Media Group. The survey was conducted May 8-14 and received 677 responses, yielding a 5 percent margin of error. Of those, 313 self-identified as a government contractor or private sector employee. Related: 62% Disapprove of Trump's Coronavirus Response, Reader Survey Finds In March, the Pentagon began paying its contractors more money up front so these large firms could send more money to the smaller companies that make up their vast and diverse supply chains. Collectively, companies have sent or pledged to send billions of dollars to their suppliers in a quicker fashion. Still, Ellen Lord, defense undersecretary for acquisition and sustainment, said last month that she was expecting a three-month slowdown in weapons deliveries as companies faced shutdowns and modified their processes and procedures to comply with social distancing and other guidelines. About 30 percent of contractors and private sector workers said their business has experienced supply-chain disruptions. While more than one-third of respondents said social distancing has hurt their company's ability to compete for government contracts, more than half said social distancing has made no difference in their company's ability to win contracts and 12 percent said restrictions have helped their company's competitive advantage. More than 17 percent said their business has had to lay off employees; 18 percent said their companies have furloughed workers. One-quarter of respondents said lack of access to senior officials and decision makers and the inability to attend networking events has affected their business. With conferences, trade shows and other in-person events on hold indefinitely, trade associations and event organizers have looked for virtual ways to replicate not only speaker presentations, but the sideline discussions and other types of networking that many consider essential to doing business in the defense sector. “Your ability to pull somebody off the stage coming off a panel, the ability to ask a question in the question-and-answer period in this environment, is a little bit challenging,” Hawk Carlisle, a retired Air Force general who is CEO of National Defense Industrial Association, said in an interview late last month. “It is having an effect and I do believe the longer this goes on it will continue to have an effect.” This week, NDIA, which represents 1,700 large and small companies and has 70,000 individual members, became the first to transform a large conference and trade show into a fully virtual conference. Typically, its SOFIC event is held in Tampa, near the U.S. Special Operations Command headquarters. This year, the speeches and panel discussions were broadcast online. What's more, the organization facilitated meetings between companies and government officials. NDIA, which usually hosts dozens of events around the country each year, is considering new ways to hold its gatherings, including hosting hybrid events, with some people in attendance and others attending virtually, Carlisle said. https://www.defenseone.com/business/2020/05/coronavirus-hampering-defense-contractor-operations-reader-survey-finds

By David McLaughlin and Anthony Capaccio There's a $17 billion pot of money in the pandemic aid package for companies vital to national security -- and no one seems to want it. The $2 trillion rescue package Congress adopted in late March includes loans and loan guarantees specifically for companies “critical to maintaining national security.” The funds at first were seen as largely directed at Boeing Co., which at the time had been pleading for a government bailout. But after selling $25 billion in bonds to investors, the aircraft maker turned down the aid, which would have come with strings attached that it didn't like. With the $17 billion up for grabs, the U.S. defense industry is asking the Trump administration to change the criteria for getting some of it, arguing that the terms are too strict. The Treasury Department, which has sole authority over the $17 billion, has limited the companies that qualify to those whose work is designated DX, which means it ranks highest on the military's list of national priorities, or to companies that have facilities with top-secret security clearances. Only about 20 companies applied by the May 1 deadline, according to the Defense Department. There are about 300,000 companies in the Pentagon's contractor supply chain. Earlier: Defense Firms to Vie for Virus Aid With Boeing Weighing Options “What we're hearing across the board is that the restrictions and requirements on the money are pretty onerous, and a majority of companies just can't apply for the money,” said Hawk Carlisle, president of the National Defense Industrial Association, which represents defense contractors. It's another example of the Trump administration's struggle to help businesses that have been decimated by the pandemic. The initial round of $349 billion aimed at small businesses sparked outrage after large restaurant chains, a professional basketball franchise and numerous publicly traded companies were able to get money while mom-and-pop businesses were shut out. Treasury has approved about $25 billion out of the $35 billion that Congress allocated for payroll assistance to airlines and cargo carriers. Earlier: American Gets Most as Biggest Airlines Win Bulk of U.S. Aid On Tuesday, Democratic Senator Maria Cantwell of Washington asked Treasury Secretary Steven Mnuchin to broaden the criteria for qualifying for loans and reopen the application process. “Treasury's implementation of the loan program has not adequately addressed the needs of the aerospace supply chain and its workforce, which is fundamental to America's industrial base,” she wrote. It's not just the defense industry raising concerns. Ellen Lord, the Defense Department's top acquisition official, told reporters last month that Treasury's criteria may have prevented companies with the greatest need from qualifying. “We have talked with them several times; they have reached out to us,” Lord said. “I am not sure companies with DX-rated contracts are perhaps the ones that have the most critical needs.” She said suppliers already have been giving DX programs priority, which they are required to do under Pentagon rules. The Treasury Department didn't respond to requests for comment. Congress stipulated that companies receiving the national-security loans must provide the government with warrants, equity or senior debt securities and agree to limits on dividends, stock buybacks and executive pay. But it's Treasury's additional criteria that defense firms say are too narrow. It restricted loans to two groups: those with a contract with the DX rating or those with facilities that have top-secret security clearances. Eric Fanning, president of the Aerospace Industries Association, whose members include Lockheed Martin Corp. and BAE Systems Plc, said the criteria should be broadened to cover more companies. A Pentagon spokesman, Air Force Lieutenant Colonel Mike Andrews, said in an email that the Defense Department has determined that only a few programs required a DX rating, but opted to stop releasing their names as of December 2018. Before that, the Pentagon had said there are about a dozen DX programs, including those for the Minuteman III ICBM program, the B-2 bomber, presidential aircraft, missile warning satellites and nuclear-missile submarines. Some of the major companies involved are Boeing, Lockheed Martin, Northrop Grumman Corp. and General Dynamics Corp. The Pentagon doesn't track the number of companies that possess top-secret clearances, but only the number of facilities cleared at that level, spokeswoman Cynthia McGovern said in an email. Like Boeing, the large companies that might qualify for the Treasury loans are able to tap the capital markets to meet their financing needs, especially now that the Federal Reserve is pumping hundreds of billions of dollars into debt markets by buying corporate bonds and bond funds. Earlier: Here's Where $881 Billion in U.S. Aid Went in Month of Spending The Pentagon is helping by increasing progress payments by $3 billion and speeding up those payments to contractors, which range from the biggest makers of weapons systems to the more numerous, lower-tier suppliers of everything from software to uniforms. But many contractors also rely on commercial deals to supplement their government work. With the airline industry facing a sharp and lengthy contraction, aviation suppliers could see a greater need for rescue financing in the near future, said Fanning of the aerospace industry group. Boeing, for example, in late April said it's shrinking its workforce by about 10%, or about 16,000 jobs, to conserve cash. General Electric Co. is cutting about 13,000 jobs in its jet-engine operation. Spirit AeroSystems Holdings Inc., a supplier to Airbus and Boeing, is also cutting jobs. “We don't have a sense yet of where the stress points are in the industrial base,” Fanning said. “The health of supply chains can take a while to sort out and show where there are problems.” https://www.bloomberg.com/news/articles/2020-05-14/a-17-billion-pot-of-national-security-stimulus-aid-goes-begging

Michael Bruno Companies across the board are slashing costs, preserving cash, and trying to adjust to a new normal after the novel coronavirus throttled down business prospects. But there is one area they are sure to spend even more money on in the coming years as industry regroups after COVID-19. Listen in as Aviation Week and Accenture discuss what to watch for in technology investments. https://aviationweek.com/podcasts/check-6-accenture/podcast-what-ad-companies-should-invest-after-covid-19

Airbus et l'institut Fraunhofer FKIE créent un groupe d'experts sur l'utilisation responsable des nouvelles technologies. L'humain doit pouvoir conserver en toutes circonstances le contrôle du système de combat aérien futur (SCAF) quand il sera opérationnel. Dans le cadre du projet de système de combat aérien futur (SCAF), Airbus et l'institut allemand de communication, traitement de l'information et ergonomie Fraunhofer FKIE, basé à Bonn, ont créé un groupe d'experts sur l'utilisation responsable des nouvelles technologies en vue de définir et de proposer des « garde-fous » éthiques et juridiques internationaux pour le plus grand projet de défense européen. Mis en place initialement en Allemagne en 2019, ce groupe d'experts est actuellement composé de représentants des ministères allemands de la Défense et des Affaires étrangères, ainsi que de diverses fondations, universités et think tanks. « Le SCAF représente une énorme avancée à bien des égards. Il s'agit du plus grand projet de défense européen des décennies à venir et, à ce titre, il favorisera la collaboration des nations partenaires. Avec le SCAF, nous allons intensifier nos efforts pour développer les nouvelles technologies qui composeront ce système de systèmes aérien de sixième génération », a déclaré Dirk Hoke, CEO d'Airbus Defence and Space. « Ce programme offre de nouvelles perspectives dans le domaine des politiques de sécurité et contribue à renforcer le rôle de l'Europe dans le monde. Mais il soulève aussi certaines questions éthiques et juridiques sur lesquelles nous devons nous pencher. » Le programme SCAF est un système de systèmes en réseau d'une grande complexité, avec pour élément central un avion de combat de nouvelle génération. Cette plateforme avec pilote coopérera avec des drones d'appui appelés « remote carriers », qui fourniront des capacités essentielles pour l'accomplissement des missions. Des architectures système évolutives et interopérables permettront d'intégrer au SCAF les plateformes existantes modernisées. Pour tirer le meilleur parti des capacités collaboratives des plateformes avec et sans pilote, un « Air Combat Cloud » fusionnera en temps réel de gros volumes de données, associés à l'analyse militaire et à l'intelligence artificielle. Les technologies développées dans le cadre de ce projet devraient, en outre, avoir d'importantes retombées bénéfiques pour de futures applications civiles. Le professeur Reimund Neugebauer, Président de l'institut Fraunhofer-Gesellschaft e. V., a déclaré : « Le SCAF est sur le plan technologique le programme de défense le plus vaste et le plus ambitieux jamais réalisé en Europe. L'un des enjeux essentiels qui occupera notre groupe consiste à veiller à ce que le système réponde aux besoins des missions du XXIe siècle à l'échelle mondiale, tout en garantissant un contrôle total de l'humain sur le système, à tout moment et en toutes circonstances. C'est la première fois dans l'histoire de la République fédérale d'Allemagne, qu'un projet de défense majeur s'accompagne dès le départ d'un débat intellectuel sur la mise en œuvre des principes éthiques et juridiques de base – ‘conformité éthique et juridique dès la conception'. » Un site web a été créé afin de garantir un maximum de transparence dans les travaux du groupe d'experts : www.fcas-forum.eu. Tous les membres participent aux travaux à titre bénévole et s'engagent uniquement en leur 'me et conscience. https://www.aerobuzz.fr/breves-defense/scaf-et-ethique/

NAVY Lockheed Martin Corp., Owego, New York, is awarded a $904,800,000 modification (P00011) to a previously awarded firm-fixed-price, cost-plus-fixed-fee contract N00019-19-C-0013. This modification provides for the production and delivery of three MH-60R Seahawk maritime aircraft for the Navy and 21 MH-60Rs for the government of India. Work will be performed at Owego, New York (52%); Stratford, Connecticut (40%); and Troy, Alabama (8%), and is expected to be complete by September 2024. Fiscal 2020 aircraft procurement (Navy) funds in the amount of $113,100,000 and Foreign Military Sales funds in the amount of $791,700,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Hunter Pacific Group,* San Diego, California, is awarded a $30,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity, architect-engineering contract for cost engineering, value engineering and scheduling services in the Naval Facilities Engineering Command (NAVFAC), Southwest Area of Responsibility (AOR). Work will be performed at various Navy and Marine Corps facilities and other government facilities within the NAVFAC Southwest AOR including, but not limited to: California (87%); Arizona (5%); Nevada (5%); Colorado (1%); New Mexico (1%); and Utah (1%). Work provides for cost estimates and other cost engineering services in support of analyses, reports, designs and change orders. Cost engineering services may include construction cost reduction evaluations and recommendations, bid analyses and verifications, validations of DD Form 1391 scope/cost estimate, peer review of cost estimates, review and technical analysis of contractor change order cost proposals and assistance with claims, litigations and negotiations with boards/committees. Value engineering services shall include facilitating and forming multi-discipline technical teams to conduct value engineering and/or function analysis concept development (FACD) workshops for a variety of projects. Services in support of value engineering and FACD workshops may include site investigations, preparation and/or review of engineering studies/reports, cost estimates, facility and infrastructure assessments, risk assessments, life cycle cost engineering and/or total ownership cost analyses, and schematic layouts/sketches. Scheduling shall be in support of analyses and change orders and may include preparation of schedules and construction cost loaded schedules, review/analysis of base line contractor schedules and schedule updates, review/analysis of contractor change orders, time impact analysis and assistance with claims, litigations and negotiations with boards/committees. Work is expected to be complete by April 2025. No task orders are being issued at this time. Fiscal 2020 operations and maintenance (O&M) (Navy) contract funds in the amount of $5,000 are obligated on this award and will expire at the end of the current fiscal year. Future task orders will be primarily funded by O&M (Navy) and O&M (Marine Corps). This contract was competitively procured via the Navy Electronic Commerce Online website and four proposals were received. The Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-20-D-0614). PSI Pax Inc.,* California, Maryland, is awarded a $29,286,410 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract. Work will be performed in Patuxent River, Maryland, and provides administrative, business and financial services such as data entry accounting processes, interface error research and analysis, process management, deficiency identification, testing of system changes, professional and analytical support, liaison support, funds management, financial tracking, internal and external data calls, document and records management, specialized analytical support in meeting financial systems requirements, assessing financial systems relative to data integrity, corporate and user reporting requirements as well as centralized support of travel related processes to include help desk support for the entire Naval Air Systems Command. Work is expected to be complete by June 2025. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was competitively procured as a small business set-aside via an electronic request for proposal; five offers were received. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity (N00421-20-D-0073). Mustang Technology Group LP, doing business as L3 Mustang Technology, Plano, Texas, is awarded a $19,082,000 fixed-price-incentive-firm-target modification to previously awarded contract N00024-19-C-5313 for 658 rounds of 57mm MK 332 High Explosive-4 Bolt Guided (HE-4G) Cartridge ammunition. Work will be performed in Plano, Texas (78%), and Cincinnati, Ohio (22%), and is expected to be complete by September 2021. Fiscal 2020 and 2019 procurement of ammunition, (Navy and Marine Corp) funding in the amount of $19,082,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. L3 Harris Technologies Inc., Anaheim, California, is awarded a $12,732,754 cost-plus-fixed-fee contract modification (P00030) to exercise options under previously awarded and announced contract N00030-18-C-0001. Work will be performed in Anaheim, California (71%); Cape Canaveral, Florida (23%); Washington, D.C. (3%); Bremerton, Washington (1%); Norfolk, Virginia (1%), and Kings Bay, Georgia (1%). Work will provide services and support for Flight Test Instrumentation and is expected to be complete by August 2022. Fiscal 2020 operations and maintenance (Navy) funds in the amount of $2,968,016; fiscal 2020 weapons procurement (Navy) funds in the amount of $9,332,143; and fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $200,000 are obligated on this award. Fiscal 2020 operations and maintenance (Navy) funds in the amount of $2,968,016 will expire at the end of the current fiscal year. This contract modification is awarded to the contractor on a sole-source basis under 10 U.S. Code 2304(c)(1) and was previously synopsized on the Federal Business Opportunities website. The Strategic Systems Programs, Washington, D.C., is the contracting activity. IDSC Holdings LLC, Snap-on Industrial, Kenosha, Wisconsin, is awarded an $11,088,933 firm-fixed-price, indefinite-delivery/indefinite-quantity contract. This contract procures up to 2,064 toolboxes containing 1.423 different types of commercial tools in support of initial outfitting associated with F-35 low rate initial production and maintenance. Work will be performed in Kenosha, Wisconsin, and is expected to be complete by September 2021. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was competitively procured via an electronic request for proposal and four offers were received. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity (N68335-20-D-0025). Northrop Grumman Systems Corp., San Diego, California, is awarded a $9,162,847 modification (P00002) to cost-plus-fixed-fee order N00019-19-F-0280 against previously issued basic ordering agreement N00019-15-G-0026. This modification provides systems engineering and program management support for the development, integration, test and delivery of two radar altimeters and two integrated avionics units in support of the BQM-34S Firebee High Performance Aerial Target System, BQM-74E target drones and the Aerial Targets Program Office. Work will be performed in Endicott, New York (62%); San Diego, California (37%); and Clearwater, Florida (1%). Work is expected to be complete by January 2022. Fiscal 2018 weapons procurement (Navy) funds in the amount of $4,472,396 and fiscal 2019 weapons procurement (Navy) funds in the amount of $4,690,451 will be obligated at time of award, $4,472,396 of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Independent RT Center LLC, Cibolo, Texas, is awarded $8,029,638 for firm-fixed-price delivery order M67854-20-F-5018 under previously awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contract M67854-20-D-5000 with a maximum ceiling of $62,500,000, for the Rough Terrain Container Handlers Service Life Extension Program. Work will be performed in Cibolo, Texas, and is expected to be complete by January 2030. Fiscal 2019 Congressional funds in the amount of $3,066,228 and fiscal 2020 procurement (Marine Corps) funds in the amount of $4,963,410 are being obligated and will expire Sept. 30, 2021. This contract was competitively procured via the Federal Business Opportunities website and two offers were received. The Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-20-D-5000). Huntington Ingalls Inc., Newport News, Virginia, is awarded a $7,400,000 not-to-exceed, fixed-price incentive, undefinitized change order modification to contract N00024-15-C-2114 for the installation of Consolidated Afloat Networks and Enterprise Services AN/USQ-208B (V) 5 Local Area Network drops. Work will be performed in Newport News, Virginia, and is expected to be complete by May 2022. Fiscal 2018 shipbuilding and conversion (Navy) funding in the amount of $3,700,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Supervisor of Shipbuilding, Conversion and Repair, Newport News, Virginia, is the contracting activity. ARMY Perspecta Enterprise Solutions LLC, Herndon, Virginia, was awarded an Other Transaction Authority agreement with a ceiling of $237,243,000 to develop, integrate, deliver, operate and maintain an enterprise capability for Army training and education information. Bids were solicited via the internet with three received. Work will be performed in Herndon, Virginia, with an estimated completion date of May 17, 2024. Fiscal 2020 research, development, test and evaluation (Army) funds in the amount of $14,500,000 were obligated at the time of the award. U.S. Army Contracting Command, Newark, New Jersey, is the contracting activity (W15QKN-20-9-1118). Charles River Laboratories, Wilmington, Massachusetts (W81XWH-20-A-0003); Envigo RMS LLC, Indianapolis, Indiana (W81XWH-20-A-0004); and The Jackson Laboratory, Bar Harbor, Maine (W81XWH-20-A-0005), will compete for each order of the $25,000,000 firm-fixed-price contract to supply small laboratory research animals and related services. Bids were solicited via the internet with three received. Work locations and funding will be determined with each order, with an estimated completion date of July 8, 2025. U.S. Army Medical Research Acquisition Activity, Fort Detrick, Maryland, is the contracting activity. Quantitech Inc., Huntsville, Alabama, was awarded a $17,686,572 modification (000237) to contract W31P4Q-16-A-0010 for programmatic support for the Utility Helicopters Project Manager's Office. Work will be performed in Huntsville, Alabama, with an estimated completion date of May 14, 2021. Fiscal 2020 Foreign Military Sales (Australia); other procurement (Army); and research, development, test and evaluation (Army) funds in the amount of $17,686,572 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Mantle-Plocher JV,* Worden, Illinois, was awarded a $14,793,000 firm-fixed-price contract for placement and leasing of modular facilities to support approximately 450 personnel at Scott Air Force Base. Bids were solicited via the internet with four received. Work will be performed at Scott Air Force Base, Illinois, with an estimated completion date of May 13, 2025. Fiscal 2020 operations and maintenance (Air Force) funds in the amount of $14,793,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky, is the contracting activity (W912QR-20-C-0021). Dawson Enterprises LLC,* Honolulu, Hawaii, was awarded a $10,431,915 firm-fixed-price contract for construction of utility infrastructure to support the installation of a modular paint booth and personnel building. Bids were solicited via the internet with one received. Work will be performed in Tucson, Arizona, with an estimated completion date of Nov. 5, 2021. Fiscal 2019 civil operations and maintenance funds in the amount of $10,431,915 were obligated at the time of the award. U.S. Army Corps of Engineers, Los Angeles, California, is the contracting activity (W912PL-20-C-0017). AIR FORCE Braxton Technologies LLC, Colorado Springs, Colorado, has been awarded a $31,399,226 cost-plus-fixed-fee contract modification (P00012) to contract FA8806-19-C-0003 for support and delivery network, infrastructure, hardware and architecture solutions under the Cross Mission Ground Communications Enterprise Corps (ECX). This contract award provides for cross-domain solutions, design, integration and rapid delivery team services. Work will be performed in Colorado Springs, Colorado, and is expected to be completed by May 17, 2021. This award is the result of a sole-source acquisition under the Small Business Innovation Research Program. The total cumulative face value of the contract is $55,387,870. Fiscal 2020 research, development, test and evaluation funds in the amount of $8,507,999 are being obligated at the time of award. Space and Missile Systems Center, Los Angeles Air Force Base, California, is the contracting activity. The Corporation of Mercer University, Warner Robins, Georgia, has been awarded a $9,039,309 task order (FA8523-20-F-0029) on basic contract FA8523-20-D-0001 to provide Laboratory Intelligence Validated Emulators-Virtual-Constructive (LVC) closed-loop engineering test and evaluation of newly developed electronic warfare (EW) systems. This order provides integration of gold-standard Intelligence Community threat definitions into the Electronic Warfare and Avionics Integrated Support Facility, where LVC closed loop operational test – vertical testability demonstration simulations and testing will be conducted to inform the baseline capability and to identify growth areas for improving operational survivability, reliability and mission success of fielded EW systems in support of airborne U.S. warfighting elements. Work will be performed in Warner Robins, Georgia, and is expected to be completed by May 13, 2022. Fiscal 2020 operations and maintenance funds in the amount of $4,140,106 are being obligated at the time of award. The Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity. *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2187605/source/GovDelivery/

By: Joe Gould WASHINGTON ― Four defense industry trade associations “strongly oppose" a handful of Pentagon-backed procurement reform proposals that they say would harm the defense industrial base, and they're asking Congress to reject them. Two of the proposals aim at controversial pricing practices used by TransDigm by requiring contractors to submit cost information for commercial items and by requiring contracting officers to conduct a commercial item determination for every procurement. Others would set a preference for performance-based contract payments and authorize the Defense Department to release or disclose detailed manufacturing or process data. The May 6 protest letter came from the Acquisition Reform Working Group — made up of the National Defense Industrial Association, American Council of Engineering Companies, the Computing Technology Industry Association and the Information Technology Industry Council — to the the House and Senate armed services committees. It comes as the panels were readying their drafts of the 2021 National Defense Authorization Act. The Pentagon has worked to monitor its network of suppliers from the economic shocks associated with the coronavirus pandemic and to protect suppliers by using emergency funding from Congress to speed payments and improve cash flow along the supply chain. The trade groups noted they represent “thousands of small, mid-sized, and large companies in addition to hundreds of thousands of employees that provide goods, services, and personnel to the Department of Defense,” and said the four proposals a “could have significant consequences for the defense industrial base.” Congress focused ire at TransDigm last year after the Defense Department's Inspector General found for $26.2 million in parts the military bought from TransDigm, it earned $16.1 million in excess profit. Transdigm was the only manufacturer of the majority of the parts, which let it set the market prices even for competitively awarded parts. Though DoD has argued its contractors need new latitude to make commercial item determinations and obtain cost or pricing information to prevent the excessive pricing TransDigm was accused of, the trade groups argue the TransDigm's actions weren't facilitated by an inappropriate reliance on improper commercial item determinations, or insufficient access to pricing data. “As illustrated by the TransDigm Group, Inc's pricing practices, generally once a conversion to a commercial product or commercial service is made, it is common for prices to increase and subsequent contracting officers find it difficult to obtain data necessary to determine price reasonableness and negotiate fair and reasonable prices on behalf of the taxpayer,” the department said in its proposal. Another proposal would require a contractor to submit uncertified cost information for commercial item proposals or contracts less than $2 million. The idea behind the reform is DoD wants to be able to get more insight into the costs of sole-source items and put itself in a more favorable position to negotiate with sole-source companies. Congressional hearings on TransDigm's excessive pricing showed Defense leaders need the authority to obtain the data “to the extent necessary to determine price reasonableness is paramount in ensuring that such excessive pricing practices are curtailed.” But the trade groups argue that levying the new regulations would “add a significant barrier to commercial item acquisition, reduce information sharing, further burden the system, and impede—rather than enable—the delivery of capabilities to the warfighter at the ‘speed of relevance'—all with little to no added protection for the government or the taxpayer." The trade associations also opposed DoD's legislation to set a preference for performance-based contract payments. The groups said a DoD proposal to “recouple” total performance-based payments to total cost incurred would reverse Congress's previous work to emphasize performance over cost and contradict a spate of defense acquisitions rules. DoD's argument is that it shouldn't be reimbursing a contractor more than its actual costs, or it “would result in negative levels of contractor investment,” and create a disincentive for contractors to deliver. Another disputed proposal would let DoD release detailed manufacturing or process data, or DPMD, pertaining to privately funded commercial or noncommercial items outside of the government to third parties seeking to compete against the original equipment manufacturer. It's the latest episode in a running game of tug-of-war between industry and DoD over intellectual property. While Congress has in recent years prodded DoD to set intellectual property strategies early in acquisition programs and negotiate for IP rights on a case-by-case basis, the trade groups argue the proposal would give DoD “an automatic default authority” and “eliminate the possibility of a negotiated solution.” https://www.defensenews.com/congress/2020/05/15/citing-transdigm-dod-seeks-new-acquisition-powers-and-trade-groups-oppose/

DEFENSE LOGISTICS AGENCY BAE Systems Controls Inc., Fort Wayne, Indiana, has been awarded a maximum $1,116,966,065 modification (P00014) exercising the five-year option period of a 10-year base contract (SPE4AX-15-D-94l4) with one five-year option period for consumable and depot-level repairables supporting multiple weapon systems platforms. This is a firm-fixed-price requirements prospective price redetermination contract. Locations of performance are Indiana, Texas, Arizona, California, New Jersey, New York and New Hampshire, with a March 22, 2025, performance completion date. Using customers are Army, Navy, Air Force, Marine Corps, Defense Logistics Agency and federal civilian agencies. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Richmond, Virginia. Labatt Food Service, San Antonio, Texas, has been awarded a maximum $78,373,493 fixed-price with economic-price-adjustment, indefinite-quantity contract for full-line food distribution. This was a competitive acquisition with three responses received. This is a two-year base contract with one one-year option period and one two-year option period. Locations of performance are Texas and New Mexico, with a May 10, 2022, performance completion date. Using military services are Air Force, Army, Marine Corps and civilian federal agencies. Type of appropriation is fiscal year 2020 through 2022 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-20-D-3250). AM General LLC, South Bend, Indiana, has been awarded a maximum $7,042,059 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for diesel cylinder heads. This is a three-year contract with no option periods. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. Location of performance is Indiana, with a May 15, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2023 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-20-D-0097). AIR FORCE J Davis Construction Management Inc., Oxnard, California (FA8003-20-D-0008); Bishop Inc.,* Orange, California (FA8003-20-D-0009); SMNC Properties LLC, Saint Mary's, Alaska (FA8003-20-D-0011); BC Schmidt Construction Inc.,* Colusa, California (FA8003-20-D-0016); Pacific Federal-Pacific Tech JV 2, Longview, Washington (FA8003-20-D-0010); MIWOK Construction LLC, Las Vegas, Nevada (FA8003-20-D-0012); ENH LLC, Garden Grove, California (FA8003-20-D-0013); Heffler Contracting Group, El Cajon, California (FA8003-20-D-0014); Aleut Field Services LLC, Fairbanks, Alaska (FA8003-20-D-0015); Chatmon-VJR JV LLC, La Place, Louisiana (FA8003-20-D-0017); Good-Men Roofing and Construction Inc.,* San Diego, California (FA8003-20-D-0018); Prairie Band Construction Inc., Mayetta, Kansas (FA8003-20-D-0020); DKJR Roofing LLC,* Le Mars, Iowa (FA8003-20-D-0021); A-Vet Roofing & Construction LLC, Warner Robins, Georgia (FA8003-20-D-0019); PMR Services LLC, Watford City, North Dakota (FA8003-20-D-0022); RSSI Roofing Co.,* Essex, Maryland (FA8003-20-D-0028); Doliveira DJB JV LLC, Annapolis, Maryland (FA8003-20-D-0029); Kunj Construction Corp., Northvale, New Jersey (FA8003-20-D-0030); D.A. Nolt Inc.,* Berlin, New Jersey (FA8003-20-D-0023); Ocean Construction LLC, Marmora, New Jersey (FA8003-20-D-0024); Roofing Resources Inc.,* Kennett Square, Pennsylvania (FA8003-20-D-0025); Carroll's Roofing and Construction LLC, Arlington, Tennessee (FA8003-20-D-0026); Swan Contracting, Peterborough, New Hampshire (FA8003-20-D-0027); ACTS/Meltech JV1 LLC,* Virginia Beach, Virginia, (FA8003-20-D-0031); A-Vet Roofing & Construction LLC, Warner Robins, Georgia, (FA8003-20-D-0032); The Roof & Metal Co., El Paso, Texas (FA8003-20-D-0037); AR6-Cram Roofing JV,* New Braunfels, Texas (FA8003-20-D-0041); Brazos Roofing Intl of South Dakota,* Waco, Texas (FA8003-20-D-0042); CUE Enterprises Inc.,* Jacksonville, Florida (FA8003-20-D-0033); Carmen Express JV LLC,* McKinney, Texas (FA8003-20-D-0034); MIWOK Construction LLC, Las Vegas, Nevada (FA8003-20-D-0035); Platinum Roofing,* Sheridan, Arkansas (FA8003-20-D-0036); ENH LLC, Garden Grove, California (FA8003-20-D-0038); RYCARS Construction LLC,* Kenner, Louisiana (FA8003-20-D-0039); Good-Men Roofing and Construction Inc.,* San Diego, California (FA8003-20-D-0040); Topside Contracting LLC,* San Antonio, Texas (FA8003-20-D-0043); Heffler Contracting Group, El Cajon, California (FA8003-20-D-0044); PMR Services LLC, Watford City, North Dakota (FA8003-20-D-0045); Legacy JV Group LLC,* Warner Robins, Georgia (FA8003-20-D-0046); Advon Construction Corp.,* Tallahassee, Florida (FA8003-20-D-0048); Jordon Construction Co., Greenville, South Carolina (FA8003-20-D-0051); Best Value Management LLC,* Jacksonville, Florida (FA8003-20-D-0056); Associates Roofing & Construction Inc.,* Murrells Inlet, South Carolina ((FA8003-20-D-0057); Yerkes South-Advanced Roofing Inc., Crestview, Florida (FA8003-20-D-0060); Inland Construction and Engineering,* Panama City, Florida (FA8003-20-D-0067); Legacy JV Group LLC,* Warner Robins, Georgia (FA8003-20-D-0047); Carmen Express JV LLC,* McKinney, Texas (FA8003-20-D-0049); D.A. Nolt Inc.,* Berlin, New Jersey (FA8003-20-D-0050); Ocean Construction LLC, Marmora, New Jersey (FA8003-20-D-0052); Pacific Federal-Pacific Tech JV 1, Longview, Washington (FA8003-20-D-0053); Platinum Roofing,* Sheridan, Arkansas (FA8003-20-D-0054); Topside Contracting LLC,* San Antonio, Texas (FA8003-20-D-0055); Chatmon-VJR JV LLC, La Place, Louisiana (FA8003-20-D-0058); Ames1 DayNight JV, Anchorage, Alaska (FA8003-20-D-0059); ACTS/Meltech JV1 LLC,* Virginia Beach, Virginia (FA8003-20-D-0061); RYCARS Construction LLC,* Kenner, Louisiana (FA8003-20-D-0062); CYE Enterprises Inc.,* Jacksonville, Florida (FA8003-20-D-0063); Swan Contracting, Peterborough, New Hampshire (FA8003-20-D-0064); Roofing Resources Inc.,* Kennett Square, Pennsylvania (FA8003-20-D-0065); Carroll's Roofing and Construction LLC, Arlington, Tennessee (FA8003-20-D-0066); Consolidated Enterprises Inc.,* Anchorage, Alaska (FA8003-20-D-0002); Interior Alaska Roofing Inc.,* Fairbanks, Alaska (FA8003-20-D-0004); EP Roofing,* Anchorage, Alaska (FA8003-20-D-0003); Orion Construction Inc.,* Wasilla, Alaska (FA8003-20-D-0005); Aleut Field Services LLC, Fairbanks, Alaska (FA8003-20-D-0007); and Ames1 DayNight JV, Anchorage, Alaska (FA8003-20-D-0006), have been awarded a not-to-exceed $325,000,000 (all-inclusive/program wide) firm-fixed-price, indefinite-delivery/indefinite-quantity contract to 43 contract holders with 66 contracts for roofing repair, replacement and maintenance. Work will be performed at various Air Force contiguous U.S. installations and installations in Alaska, with work expected to be completed by May 14, 2025. This award is the result of a competitive acquisition and 69 offers were received. Fiscal 2020 operations and maintenance funds in the amount of $66,000 ($1,000 to each contract) are being obligated at the time of award. The 771st Enterprise Sourcing Squadron, Wright-Patterson Air Force Base, Ohio, is the contracting activity. PAE Aviation and Technical Services LLC, Arlington, Virginia, has been awarded a $157,990,274 firm-fixed-price and cost reimbursable contract for performance of the Eglin backshop maintenance services contract. This contract provides for support for repair, maintenance and modification of F-15, F-16, UH1N, C-130 and other required aircraft, including maintaining support equipment and providing crash recovery services. Work will be performed at Eglin Air Force Base, Florida. The period of performance includes a 30-day transition period, a one-year base year with six one-year options and an option to extend services for six months. This award is the result of a full and open competitive acquisition and six offers were received. Fiscal 2020 research, test, development and evaluation funds in the amount of $7,098,853 are being obligated at the time of award. Air Force Test Center, Eglin AFB, Florida, is the contracting activity (FA2486-20-C-0003). Vectrus Systems Corp., Colorado Springs, Colorado, has been awarded a $17,382,577 firm-fixed-price modification (A00072) to contract FA3002-17-C-0001 for base operations support services at Keesler Air Force Base, Mississippi. Work will be performed at Keesler AFB and is expected to be completed May 31, 2021. Fiscal 2020 operations and maintenance funds in the amount of $17,365,577 are being obligated at the time of award. Total cumulative face value of the contract is $78,311,850. The 81st Contracting Squadron, Keesler AFB, Mississippi, is the contracting activity. Raytheon Missiles and Defense, Tucson, Arizona, has been awarded a $17,354,159 firm-fixed-price modification (P00024) to contract FA8675-18-C-0003 for the Advanced Medium Range Air-to-Air Missile program. This modification provides for procurement of two new final assembly test sets and upgrade of two existing final assembly test sets. Work will be performed in Tucson, Arizona, and is expected to be completed by May 31, 2023. This contract involves unclassified Foreign Military Sales (FMS) to Australia, Indonesia, Japan, Poland, Qatar, Spain and Romania. Fiscal 2019 missile procurement (Air Force) funds in the amount of $4,589,102; fiscal 2018 weapons procurement (Navy) funds in the amount of $9,928,382; and FMS funds in the amount of $2,836,675 are being obligated at the time of award. Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity. NISQA'A TEK LLC, Chantilly, Virginia, has been awarded a $7,608,038 firm-fixed-price contract for information technology services. This contract provides for Cyber Operations for Base Resilient Architectures (COBRA) support. Work will be performed at various locations throughout Pacific Air Force bases and is expected to be completed by May 14, 2021. Fiscal 2020 operations and maintenance funds in the amount of $7,608,038 are being obligated at the time of award. Air Force District of Washington Contracting Office, Joint Base Andrews, Maryland, is the contracting activity (FA7014-20-C-0021). NAVY Alutiiq Logistics and Maintenance Services LLC,* Anchorage, Alaska, is awarded a $196,309,084 indefinite-delivery/indefinite-quantity contract for base operating support services at Naval Air Station China Lake, California. The maximum dollar value including the base period, seven option periods and a six-month option to extend services is $196,309,084. Work will be performed in China Lake, California, and provides for labor, supervision, management and materials (except those specified as government furnished) to perform various base operating support service functions. This includes operations support; supply services; facilities investment; custodial; pest control; refuse and recycling collection; grounds maintenance; street sweeping and snow removal; base support vehicle and equipment rental; and environmental services. Work is expected to be complete by December 2028. No funds will be obligated at time of contract award. Fiscal 2020 operations and maintenance (Navy); fiscal 2020 operations and maintenance (Marine Corps); fiscal 2020 working capital funds (Navy); and fiscal 2020 Defense Health Program contract funds in the amount of $17,237,567 will be obligated for recurring services on an individual task order during the base period. This contract was competitively procured via the Navy Electronic Commerce Online website with four proposals received. Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-20-D-0051). Mare Island Dry Dock LLC, Vallejo, California, is awarded a $33,532,308 firm-fixed-price contract for a 150-calendar day shipyard availability for the regular overhaul and dry-docking of U.S. Ship Emory S. Land (AS 39). Work will be performed in Vallejo, California, and is expected to be complete by January 2021. This contract includes a base period and three options which, if exercised, would bring the cumulative value of this contract to $36,228,717. Working capital funds (Navy) in the amount of $33,532,308 are obligated for fiscal 2020 and 2021, and will not expire at the end of the fiscal year. This contract was competitively procured with proposals solicited via the Government Point of Entry website and two offers received. The Naval Military Sealift Command, Norfolk, Virginia, is the contracting activity (N32205-18-C-4552). S&K Aerospace LLC,* St. Ignatius, Montana, is awarded a $30,844,497 indefinite-delivery/indefinite-quantity contract for the repair, overhaul and upgrade of 361 commercial common items used on the P-8A Poseidon maritime aircraft. Work will be performed at various contractor supplier locations (85%); and Byron, Georgia (15%). Work is expected to be completed by May 2025. This contract includes a five-year base period with no options. Working capital (Navy) funds will be obligated as individual orders are issued and funds will not expire at the end of the current fiscal year. This contract was competitively procured with the solicitation posted to the Federal Business Opportunities website as an 8(a) small business set-aside requirement, and eight offers were received. The Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity (N00383-20-D-XE01). The Nutmeg Co. Inc.,* Norwich, Connecticut, is awarded a $27,029,098 firm-fixed-price design-bid-build contract for the repair of Submarine A School Bachelor Quarters Building (BQB) 488, Naval Submarine Base, New London, Connecticut. Work will be performed at New London, Connecticut, and provides for whole building repairs to BQB 488, construction of a new sidewalk on the north side of the building and site grading in the courtyard area to channel water away from the building foundation. Interior repairs include, but are not limited to, an upgrade of existing fire protection; interior finishes; electrical; elevators; heating, ventilation and air conditioning systems; plumbing and provide exterior enclosure repairs. Work is expected to be completed by November 2021. Fiscal 2020 operations and maintenance (Navy) contract funds in the amount of $27,029,098 are obligated on this award and will expire at the end of the current fiscal year. This contract was competitively procured via the beta.SAM website with seven proposals received. The Naval Facilities Engineering Command Mid-Atlantic, Norfolk, Virginia, is the contracting activity (N40085-20-C-0025). Huntington Ingalls Industries, Pascagoula, Mississippi, is awarded $16,931,540 for a not-to-exceed, undefinitized contract action for long-lead-time material in support of one Amphibious Assault Ship (General Purpose) Replacement (LHA(R)) Flight 1 ship (LHA 9). Work will be performed in Erie, Pennsylvania (47%); Tacoma, Washington (22%), Pascagoula, Mississippi (17%); Sheffield, United Kingdom (12%); and St. Louis, Missouri (2%), and provides the procurement of long-lead-time material for LHA 9, the fourth LHA(R), America class and the second LHA(R) Flight 1 variant. Work is expected to be complete by February 2024. Fiscal 2019 shipbuilding and conversion (Navy) advance procurement funding in the amount of $16,931,540 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured, in accordance with 10 U.S. Code 2304(c)(1) and only one responsible source with no other supplies or services will satisfy agency requirements. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-20-C-2437). General Dynamics Electric Boat, Groton, Connecticut, is awarded a $16,022,000 undefinitized contract action under previously awarded contract N00024-18-C-2101 to perform Large-Scale Vehicle (LSV) 2 system refurbishment. Work will be performed in Milwaukee, Wisconsin. General Dynamics Electric Boat will obtain vendor services from Leonard DRS Naval Power Systems to support LSV 2 refurbishment. Work is expected to be complete by February 2023. Fiscal 2020 research, development, test and evaluation (Navy) funds in the amount $4,000,000 will be obligated at time of award and will not expire at the end of the current fiscal year. The Supervisor of Shipbuilding Conversion and Repair, Groton, Connecticut, is the contracting activity. The Boeing Co., Huntington Beach, California, is awarded a $13,229,197 firm-fixed-price modification to previously awarded contract N00024-17-C-4108 to exercise options for hardware procurement for the AN/USQ-82(V) Program in support of DDG-51 class new construction, DDG-51 class modernization and Foreign Military Sales (FMS) cases. This contract combines purchases for the Navy (80%); and the governments of Japan (16%) and Australia (4%) under the FMS program. AN/USQ-82(V) Program is a control system network. Its purpose is to transfer mission critical data to and from users associated with combat, navigation, aviation, power, propulsion, steering, alarms and indicating, and damage control systems. Work will be performed in Smithfield, Pennsylvania, and is expected to be complete by August 2021. Fiscal 2015, 2016, 2017 and 2020 shipbuilding and conversion (Navy); 2020 other procurement (Navy); and FMS Japan and Australia funds in the amount of $13,229,197 will be obligated at the time of the award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Lockheed Martin Rotary and Mission Systems, Liverpool, New York, is awarded a $7,894,505 firm-fixed-price modification to previously awarded contract N00024-14-C-6227 to exercise an option for the procurement of Navy equipment. Work will be performed in Liverpool, New York, and is expected to be complete by October 2021. Fiscal 2020 shipbuilding and conversion (Navy); and 2020 other procurement (Navy) funds in the amount of $7,894,505 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Huang-Gaghan JV Two,* Alexandria, Virginia, is awarded a $7,624,432 firm-fixed-price task order (N40080-20-F-4623) under a multiple award construction contract for the replacement of the heating, ventilation and air conditioning (HVAC) system at Building 1864, Naval Support Activity South Potomac, Naval Support Facility, Indian Head, Maryland. Work will be performed in Indian Head, Maryland, and will demolish the existing HVAC system at Building 1864 and provide a new HVAC system. Building 1864 is a single story laboratory of approximately 20,000 square feet that is used for the testing and evaluation of energetic material. Construction is primarily focused on airside equipment. Replacement equipment and systems includes replacement of three rooftop air handling units and associated distribution ductwork, three central exhaust systems, local exhaust systems, remote variable air volume (VAV) supply terminals with hot water reheat and associated air volume tracking exhaust VAV terminals, steam humidifiers, steam generator for humidification, direct digital controls and other miscellaneous items. A new water treatment plant shall be provided to treat water for building humidification. Support from other construction trades is required to perform the HVAC system replacement. Roof structure and closure shall be modified, fire-rated partitions and penetrations shall be provided and electrical power and grounding shall be provided along with other miscellaneous work. Work is expected to be complete by January 2022. Fiscal 2020 Navy working capital contract funds in the amount of $7,624,432 are obligated on this award and will expire at the end of fiscal year 2022. Four proposals were received for this task order. The Naval Facilities Engineering Command Washington, D.C., is the contracting activity (N40080-19-D-0001). ARMY Palomar Display Products,* Carlsbad, California, was awarded an $89,237,780 firm-fixed-price contract for biocular image control units, assorted spares and engineering services and repairs. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of May 14, 2027. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W909MY-20-D-0006). The Boeing Co., Philadelphia, Pennsylvania, was awarded a $28,000,000 firm-fixed-price contract for advanced procurement of long lead helicopter parts. Bids were solicited via the internet with one received. Work will be performed in Ridley Park, Pennsylvania, with an estimated completion date of June 30, 2022. Fiscal 2020 aircraft procurement (Army) funds in the amount of $28,000,000 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W58RGZ-20-F-0380). Greenland Enterprises Inc., Hampton, Virginia, was awarded a $19,635,242 firm-fixed-price contract to repair a hot water line. Bids were solicited via the internet with two received. Work will be performed at Wright-Patterson Air Force Base, Ohio, with an estimated completion date of Jan. 15, 2022. Fiscal 2020 military construction funds in the amount of $19,635,242 were obligated at the time of the award. U.S. Army Corps of Engineers, Louisville, Kentucky is the contracting activity (W912QR-20-C-0008). CORRECTION: The contract announced on April 30, 2020, to L3 Technologies Inc., Londonderry, New Hampshire (W56HZV-20-F-0308), for illuminator infrared parts, is actually being awarded today. The award is for $7,450,000, not $17,135,000 as previously announced. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY Applied Physical Sciences Corp., Groton, Connecticut, has been awarded an $18,822,358 cost-plus-fixed-fee contract for the base period of a research and development effort for undersea sensing systems. Work will be performed in Groton, Connecticut (60%); Woburn, Massachusetts (20%); Arlington, Virginia (7%); Pawcatuck, Connecticut (4%); Northridge, California (3%); Waltham, Massachusetts (3%); Orange, California (2%); and Concord, Massachusetts (1%), with an estimated completion date of October 2021. Fiscal 2020 research and development funds in the amount of $15,062,029 are being obligated at the time of award. This contract is the result of a competitive acquisition in accordance with original broad agency announcement HR0011-17-S-0034. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity (HR0011-20-C-0100). *Small business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2188998/source/GovDelivery/

By: Sebastian Sprenger COLOGNE, Germany — An agreement by two German shipyards to merge has dislodged a major legal roadblock in the multibillion-dollar program to build the Navy's MKS 180 large frigate-type warships. The Defence Ministry's confirmation on Friday that German Naval Yards Kiel had dropped its protest against Dutch shipbuilder Damen, who was announced as the winner of the contract in January, was the final building block in a turbulent week for the European naval industry. Days prior, the German shipbuilder said it would merge with Bremen-based Lürssen, giving the latter company the lead in building surface combatants together. Lürssen, for its part, is already part of the MKS 180 team as a subcontractor to Damen, and the Dutch said they would lean heavily on their German partner in building four initial vessels under the program. Earlier this year, German Naval Yards Kiel lamented an unfair evaluation of its MKS 180 bid by the Defence Ministry, announcing it was prepared for a potentially lengthy legal battle. But just as litigious as the company sounded in its public proclamations, industry insiders said there appeared to be a willingness early on by all companies to come to an agreement outside of duking it out in court. Damen, meanwhile, is expected to rethink the distribution of its MKS 180 workshare plan now that the former competitor is also onboard, albeit only by extension. Considerations to that effect would be a “logical next step,” one company official said. “We are pleased with the consolidation of the German shipping industry under the leadership of the Bremer Lürssen Group,” a Damen statement read. “We look forward to intensive cooperation in the future. As Damen, we see this consolidation as a positive development.” The company also believes the merger would “increase the chance of equal cooperation between Northern European countries in the field of naval construction — a development that we can only applaud in an otherwise unevenly distributed European playing field.” That leaves the question of what will happen with ThyssenKrupp Marine Systems, another losing bidder in the MKS 180 race. The company previously reported to be part of the German consolidation talks, leading to reports that a single, national shipbuilding “champion” was in the works. For now, however, TKMS is still weighing its options, as Reuters reported this week. In one scenario, the shipbuilder could merge with Italy's Fincantieri, with talks ongoing to that effect, according to the news service. It is also possible TKMS could join the other two German yards at a later time. Whatever happens next, it appears a broader move toward naval-industry consolidation may be gaining steam in the wake of the Lürssen-GNY Kiel deal, according to experts. “The cards are reshuffled,” said Sebastian Bruns, a naval analyst with the University of Kiel in northern Germany. “The consolidation is a significant step forward — and potentially not the final evolution in the Central European warship sector yet.” https://www.defensenews.com/global/europe/2020/05/15/german-shipyard-shuffle-clears-path-for-mks-180-warship-program-to-proceed/

The congressional calendar and strategic inertia may come together to keep the defense budget relatively high. The calendar helps because the fiscal 2021 defense budget will likely be passed while Congress is in a free-spending mood. By MARK CANCIAN The current Washington consensus sees deep defense budget cuts in the face of soaring deficits driven by the emergency legislation to stabilize the American economy as it reels from the effects of the COVID-19 pandemic. It may be wrong. The congressional calendar and strategic inertia may come together to keep the defense budget relatively high. The calendar helps because the fiscal 2021 defense budget will likely be passed while Congress is in a free-spending mood. The next administration — Republican or Democratic — will develop budgets beyond that, but the constraints of long-standing strategy will prevent major changes to force structure and acquisition that would drive deep budget cuts. The Challenge The conventional narrative holds that the defense budget will be squeezed as the debt level rises, and the public focuses inward on rebuilding the country's health and economic position. These are reasonable concerns. The deficit in fiscal 2020, initially projected to be about one trillion dollars ― itself getting into record territory without emergency spending― is now projected to be $3.7 trillion, and Congress is not finished spending. Debt held by the public will rise to 101 percent of GDP, a level not seen since World War II. Even if the world is willing to take US debt, rising interest payments will squeeze the rest of the budget. Simultaneously, the electorate is likely to focus inward. The pandemic is already the leading popular concern, not surprisingly. The economic devastation caused by restrictions on normal commercial activities has produced the greatest downturn since the Great Depression. It would be reasonable to put these factors together and project a substantially reduced defense budget. However, the congressional calendar and the inertia of a long-held strategy will likely mitigate any downturn. The Calendar The calendar will help because Congress is likely to pass the 2021 appropriation this fall, when the government will still be operating under emergency conditions. Congress has already passed four bills for pandemic response and economic stimulus and is developing another in the multi-trillion range. There are a few voices for fiscal constraint, but they are overwhelmed by a sentiment to “do more.” Indeed, some lawmakers and commentators are proposing increases to the defense budget to stimulate the economy, enhance deterrence of China, or protect the defense industrial base. Adam Smith, chairman of the House Armed Services Committee, has indicated his reluctance to do more than protect the industrial base, but a future stimulus bill could include such enhancements as part of a bipartisan deal. Finally, last year's bipartisan budget agreement set levels for defense and domestic spending in fiscal 2021. Undoing that agreement would be a major lift, requiring a bipartisan consensus that does not seem to be occurring. Even if the Democratic left wanted to make such cuts, defense hawks in the House and Senate could block them. Thus, in the near-term proposals for enhancements seem to be offsetting thoughts about cuts. As both the House and Senate consider their authorization acts, they seem to be aiming at roughly the level of the president's proposal and the bipartisan budget agreement. Strategic Inertia The United States has had some variation of the same national security strategy since the end of the Second World War (or perhaps more accurately, since the Korean War and publication of NSC 68, which enshrined a long term competition with the Soviet Union). That strategy involves global engagement, forward-deployed forces, alliances to offset global competitors, and commitment to maintaining an international system of free trade, human rights and secure borders. Scholars can argue about the details and how well the United States has implemented such a strategy, but the major elements have been constant. President Trump has chafed at many of these elements but has generally gone along, however reluctantly. One would expect such reluctant continuity in a second Trump administration, should that occur One would also expect strategic continuity in a Biden administration. Biden was, after all, vice president during the Obama administration, which, after the shocks of 2014, laid out a strategy of confronting five threats: Russia, China, North Korea, Iran, and terrorism. One would expect Biden to implement something like that strategy if he were in office. That does not mean that a Biden administration would do everything a Trump administration would do. The left-wing of the Democratic party would push some level of cuts, perhaps 5 percent, and take aim particularly at nuclear modernization, foreign arms sales, and Middle East conflicts. But this longstanding strategy of global engagement will put a floor on defense cuts. Remaining engaged with NATO, supporting our Asian allies like Japan and South Korea, and maintaining some presence in the Middle East, even if scaled back, takes a lot of forces. These need to be at a relatively high level of readiness to deploy globally and be credible. The all-volunteer force needs to maintain compensation and benefits at a sufficient level to compete for labor in a market economy. Competing with China and Russia requires investment in a wide variety of high technology―and costly―new systems, as well as the R&D foundation to support these innovations. Other strategies are certainly possible. Members of the Democratic left and Republican right, as well as some elements of the academic and think tank community, have proposed strategies of “restraint”, whereby the United States would significantly scale back overseas engagements. Such strategic change would produce a substantial cut in the defense budget. However, neither major candidate has supported such a change, and the national security policy community (aka “the blob”) is adamantly opposed. Despite this relatively optimistic assessment, the future is still cloudy. The president's budget proposal forecasts a level budget in constant dollars. That meant that the defense buildup was over, even if Republicans continued in office. Such budgets do not come close to the 3 to 5 percent real growth that defense officials had talked about to implement the National Defense strategy and would entail choices between readiness, force structure and modernization. A Democratic administration, with a notional 5 percent cut in the defense budget, would not constitute the deep cut that a Sanders or Warren administration might have entailed, but the $35 billion that a 5 percent cut would entail is still a lot of money. Forces would get smaller, likely wiping out all the recent force expansion, and new programs would be delayed. Bottom line: Defense may not be heading into a budget hurricane, but it is not heading into sunlight either. It faces the friction that occurs when expensive plans collide with constrained resources. Mark Cancian, a member of the Breaking Defense Board of Contributors, was a Marine colonel and senior official at the Office of Management and Budget before he joined CSIS. https://breakingdefense.com/2020/05/huge-deficit-defense-budget-cuts-maybe-not/